Emissions control proposal calls for retirement of coal-fired units

The governor of New Mexico proposed a settlement with Public Service Co. of New Mexico (PNM), a unit of PNM Resources (NYSE: PNM) that calls for shutting down two units at the 1,800 MW San Juan coal-fired power plant in order to comply with an order from the U.S. Environmental Protection Agency (EPA), according to The Associated Press.

The governor’s plan suggests that PNM retires two units at the plant by December 2017 and install less costly emissions control equipment on the remaining units, the article said.

In August 2011, EPA ordered PNM to install selective catalytic reduction (SCR) technology to control emissions under the Regional Haze Program in five years. PNM and the governor have challenged the order in federal court asking to look for more affordable options, and EPA granted a temporary stay in July. The utility said the retrofits are expected to cost between $750 million and $1 billion.

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